Lux * announces profits of Rs 547m for the nine months, ending 31st March 2017
Positive quarter for LUX* Resorts & Hotels. The Mauritian hotel group has published its accounts on the 20th April 2017, and notes an increase of 2% in revenue, to reach Rs 1.5 billion for the quarter ending the 31st March. |
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Lux * announces profits of Rs 547m for the nine months, ending 31st March 2017
Positive quarter for LUX* Resorts & Hotels. The Mauritian hotel group has published its accounts on the 20th April 2017, and notes an increase of 2% in revenue, to reach Rs 1.5 billion for the quarter ending the 31st March. |
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This is a press release selected by our editorial committee and published online for free on 2017-05-11
In Mauritius, the group notes a 5% and 12% increase in revenues and operating profits, respectively. 2017 will be a pivotal year for the group who is announcing the opening of two new hotels: LUX * Bodrum will open its doors in the coming summer in Turkey and the LUX* North Male Atoll, in Maldives, will welcome its first customers in December. In Mauritius, the LUX* Grand Gaube will be renovated at the cost of Rs 1.2 billion. The renovations will last 6 months and the facility will reopen on December 1st, 2017.
"Despite the depreciation of the pound by nearly 15% for the quarter, we are pleased to see that the group's strategy has had a positive impact on Mauritius institutions. The LUX* South Ari Atoll in the Maldives has not yet had the expected success, mainly due to increased competition. The environment in which the group operates in the Maldives is becoming more and more difficult, but we are confident that the results will improve, "says Arnaud Lagesse, Chairman of the Board of Directors.
The quarter saw an occupancy rate of 83%, similar to that of the same period last year, with a 4% improvement in the Average Daily Rate. The EBITDA (Earnings Before Interest Tax Depreciation and Amortization) increased by 2% over last year to Rs 450 million, while profits attributable to the group were Rs 255 million. A decrease of Rs 5 million compared to the previous year is mainly due to higher financial expenses and amortization related to the redevelopment of LUX* South Ari Atoll in Maldives.
According to Paul Jones, Chief Executive Officer, the results for the fiscal year are positive for the group. "We are confident that the profits for the current fiscal year will be similar to those of the previous year if the overall conditions remain unchanged. The group continues to grow through management contracts and we are of the opinion that the renovation of LUX*Grand Gaube this year will allow this establishment to offer higher rates, aligned with the other LUX* hotels in Mauritius. This will have a definite impact on the profitability of the group. "
The renovation of the LUX* Grand Gaube, at the cost of Rs 1.2 billion, will start on 1st June 2017 and will be financed both by the sale of Tamassa and by bank loans. It was the Mauritian architect Jean Francois Adam who was chosen to work on this project, with renowned interior designer Kelly Hoppen. Their proposals for the establishment are innovative and striking, both for the rooms and the public spaces.
The Board of Directors declared the payment of a dividend of Rs 1.25 (2016: Rs 1.15) for the fiscal year ending June 30, 2017. This dividend will be paid on or by the 15th June, 2017 to registered shareholders as of May 10, 2017
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